Mutual funds are investment companies that pool money from investors at large and offer to sell and buy ba ck its shares on a continuous basis and use the capital thus raised to invest in securities of different companies.
Mutual funds can be either or both of open ended and closed ended investment companies depending on their fund management pattern. An open-end fund offers to sell its shares (units) continuously to investors either in retail or in bulk without a limit
on the number as opposed to a closed-end fund. Closed end funds have limited number of shares.
Do check our various knowledge inputs for understanding the mutual fund & benifits of investing in it-
- A mutual fund is a pool of money collected from investors with similar investment goals.
- The money is invested in various securities depending on the objectives of the mutual fund scheme.
- The profits or loss are shared among the investors in proportion to their investments.